Universal credit is getting people into work. Universal basic income would put them off doing so. Why are Labour supporting the idea?

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John McDonnell's new idea is a state handout for everyone, regardless of how much you earn or your specific needs and circumstances Credit:
Simon Dawson/Bloomberg

Tired, out of touch and rejected. I’m not talking about the Labour leadership, rather Universal Basic Income (UBI), the policy John McDonnell, Labour’s Shadow Chancellor last week proposed as its new benefit system – an unconditional state handout for everyone in the country, regardless of how much money you earn or your specific needs and circumstances.

Pilots across the world have shown how a UBI policy is “expensive”, “not sustainable” and wouldn’t support extra people into work. Despite that rejection, the Labour Party seems to think it is the way forward.

Experts from the University of Bath have estimated the policy would cost up to £427 billion per year. That is over three and a half times...